Vietnam is considering hike in special consumption tax applied on big
automobiles and pick-up trucks, as well as in registration fees for pick-ups,
the Ministry of Industry and Trade said on Wednesday.

The Ministry of Finance plans to forgo fines imposed on businesses which
were behind their tax due date if their partners, including state agencies, had
failed to pay them on time in accordance with contract terms.

The Ministry of Finance is seeking government approval for a new circular to
give VAT refunds to foreigners who leave Vietnam through many other airports
and seaports rather than just the two largest terminals in the country as at
present.

As Vietnam continues to levy a special 25-50 percent tax on beer and
alcohol, the Vietnam Beer, Alcohol and Beverage Association (VBA) recently
proposed that the state administration impose a similar 10 percent tax on
carbonated beverages.

The Ministry of Finance is drafting the amended VAT law to be submitted to
the National Assembly for ratification in the upcoming National Assembly’s 5th
session. Under the draft, more products would be subject to the 5 percent tax
instead of the current rate of 10 percent.

Despite a series of policies laid down recently to help ease difficulties,
automobile joint ventures still demanded sharper tax and fee reductions. In
reply, the Ministry of Finance said they should not expect to see all the
claims to be satisfied.

HANOI – Only one-fourth of companies in Hanoi paid corporate income tax to
local State budget in 2012, resulting in the capital city’s budget revenue
falling short of the year’s target, according to Hanoi City’s Tax
Department.

HCM CITY — Only 860 foreign tourists have received value-added tax (VAT)
refunds at Tan Son Nhat International Airport, four months after the VAT policy
was introduced to increase tourism and shopping in the country.

HCM City Social Securities deputy director Do Quang Khanh brings some light
to social insurance payment in the southern hub and suggests measures to help
cushion the increase in violations within the social insurance domain.

The Vietnam Automobile Manufacturers Association (VAMA) has called on the
government's administrative agencies to stop implementing the suggestions
related to traffic fees that were recently proposed by the Ministry of
Transport.